Organisational Capability in ICT Investment

ICT Reform Agency Capability Initiative

The Government introduced the Agency Capability Initiative to improve entities’ organisational capability to commission, manage and realise benefits from ICT-enabled investments.

This initiative is part of the Government’s response to the recommendations of the Review of the Australian Government’s Use of ICT and aims to strengthen governance of the lifecycle of ICT investment including business domain activities such as benefits realisation.

The initiative applies to  Public Governance, Performance and Accountability Act 2013 (PGPA) entities with an annual ICT spend over $2 million. The Department of Finance also encourages entities with an ICT spend less than $2 million to consider the benefits of improving their organisational capability.

Entities are using the Portfolio, Programme and Project Management Maturity Model (P3M3®) as the common methodology for assessing their organisational capability.

Improving Organisational Capability

In 2011, entities conducted an initial assessment of their portfolio, program and project management capability, determined the target levels of organisational capability appropriate for their entity, and developed a capability improvement plan to reach those targets.

Entities are now required to complete a P3M3 assessments of their portfolio, program and project management capability and report to the Secretaries’ ICT Governance Board every three years on progress against their capability improvement plans.

Entities must obtain independent validation of their current capability before undertaking major ICT projects. The Government considers entities’ capability as part of the ICT Two Pass Review process to strengthen the link between policy formulation and implementation.


The Secretaries’ ICT Governance Board endorsed P3M3 as the common methodology for assessing the organisational capability of entities to commission, manage and realise benefits from ICT-enabled investments.

P3M3 provides a framework for entities to assess their capability in portfolio, program and project management and develop targeted improvement plans.

P3M3 is a globally recognised capability maturity model covering portfolio, programme and project management.

Further information on P3M3 including the P3M3 Model is available from the Official P3M3 Website [].

P3M3 Assessment Consultancy Services

Entities may procure P3M3 assessment consultancy services from APMG PPM Accredited Consulting Organisations (ACOs) qualified to undertake P3M3 assessments. APMG-Australasia maintains a list of these ACOs on its website.

Further Information

Further information is available from the Improve Agency Capability Community of Practice on GovDex ( GovDex provides a secure online environment for Finance and FMA Act agencies to share information relating to the implementation of P3M3.

For advice on the implementation of P3M3, please email the Capability Assessment mailbox.

P3M3® is a Registered Trade Mark of the UK Cabinet Office.

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Last updated: 08 July 2014